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The Dark Pool Knight Capital Plummets

Tyler Durden's picture




 

 

Forget Bane, Knight is going dark:

  • *KNIGHT CAPITAL EXPERIENCING DELAY IN PROCESSING STOCK ORDERS
  • *KNIGHT CITES 'TECHNOLOGY ISSUE' FOR PROCESSING DELAYS
  • *KNIGHT TELLS CLIENTS TO EXECUTE TRADES ELSEWHERE FOR NOW

And the share price is now down 23%...

 

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Wed, 08/01/2012 - 11:48 | 2668881 Precious
Precious's picture

Chinese are probing their security perimeter for the day the United States of Israel strikes Iran.

Wed, 08/01/2012 - 11:49 | 2668931 hedgeless_horseman
hedgeless_horseman's picture

 

 

"Everyone run to safety... http://www.treasurydirect.gov/ !!!"

-Timmy

 

Wed, 08/01/2012 - 11:57 | 2668977 malikai
malikai's picture

PPT to battle stations immediately!

Wed, 08/01/2012 - 12:03 | 2669000 economics9698
economics9698's picture

“This is it!”  What a asshole. 

Wed, 08/01/2012 - 14:02 | 2669498 iDealMeat
iDealMeat's picture

Fun Little nugget:

 

William L. Bolster
Lead Director, Knight Capital Group, Inc., Retired Chairman
and Chief Executive Officer, CNBC International

 

Nominating and Corporate Governance Committee, Chair
Compensation Committee, Member
Finance and Audit Committee, Member

William L. Bolster, Lead Director of the Company, has served on the Board since November 2003. Mr. Bolster was Chairman and Chief Executive Officer of CNBC International from July 2001 to November 2003 and was a consultant to CNBC International until February 2004. Prior thereto, he was President of CNBC from January 1996 until July 2001. Previously, Mr. Bolster was President and General Manager of WNBC-TV in New York. Mr. Bolster received a B.A. in Business Administration from Loras College in 1967.

Wed, 08/01/2012 - 21:39 | 2670872 StychoKiller
StychoKiller's picture

Yelling "Fire!" would get you arrested...

Wed, 08/01/2012 - 12:17 | 2669078 hannah
hannah's picture

"The witnesses also said no shots were fired and no shell casings were found, the affidavit said."

 

this kind of bullshit was in the article. no shell casing found....there wasnt even a gun. the idiot was just yelling. this has nothing to do with firearms but the media has to have a gun in the story...evn thou there wasnt one.

Wed, 08/01/2012 - 12:07 | 2669025 1100-TACTICAL-12
1100-TACTICAL-12's picture

Serious ? I fully intend to cash out my 401k is now the time or is ben gonna pump it up ?

Wed, 08/01/2012 - 12:41 | 2669169 IndicaTive
IndicaTive's picture

Definitely.

Wed, 08/01/2012 - 13:08 | 2669277 Paul Atreides
Paul Atreides's picture

Cash out, buy physical metals asap!

Wed, 08/01/2012 - 12:30 | 2669130 Tippoo Sultan
Tippoo Sultan's picture

Down 23%...now it appears the algos are feeding upon one of their own. Akin to a torpedo homing in on the very same boat which launched it.

We will hear hull cavitations soon enough.

Wed, 08/01/2012 - 11:54 | 2668968 slaughterer
slaughterer's picture

KCG is a large MM for OTC stocks.  Things went crazy there on the pink sheets this morning.  Wonder if KCG is the next MFG/Peregrine disaster.

Wed, 08/01/2012 - 12:10 | 2669048 malikai
malikai's picture

Reminds me of the BATS "incident". Probably too much volume or some failed systems somewhere, triggered by your friendly local HFT.

Usual suspects.

Wed, 08/01/2012 - 12:12 | 2669060 walküre
walküre's picture

Correct and the OTC has been pretty much illiquid for the last 6 months. It's finally catching up with the MM.

No volume in OTC is the death of KCG.

Great news.

Wed, 08/01/2012 - 12:30 | 2669117 Daily Bail
Daily Bail's picture

I've hated Knight Trading since 1999-2000 when we were shorting all the dotcoms and these fuckers were always faking bids on the Level III screens.  I got so pissed off one day I called the CEO and yelled at him for 2 minutes about market manipulation and then I hung up and we shorted 50,000 shares of his company as our way of saying "Fuck You, prick."

We made a little bit and closed the trade a week later.

My fav story was shorting Redback Networks in 1999 - they announced a huge secondary that would allow insiders to dump millions of shares, but instead of going down, the stock rallied because Cramer was long Redback at his hedge fund and he had used 2 CNBC appearances that day to say how fucking great the secondary was because it meant that institutions would now be able to get into the company in size.

So I emailed CNBC reporter Bob Costello, (whom I had never communicated with before) with a long screed about how the secondary would DILUTE, and that cramer was a fucking monkey spouting garbage.  And 15 minutes later, it was Costello's turn to report from the NAZ, and he immediately said 'I have this email just in from a Santa Monica based fund manager' and he proceeded to read my email ripping Redback and (Cramer the monkey) word for word on the air for about 45 seconds.

Meanwhile, I was sitting in my apartment in Santa Monica, on my couch, in my underwear.  We were not really a hedge fund.  I had about $15 million under management at the time.  And I had just forged my way into a breathless Tom Costello CNBC report calling Jim Cramer a monkey.

I'm pretty sure it was the happiest moment of my life.

Wed, 08/01/2012 - 12:33 | 2669144 Tippoo Sultan
Tippoo Sultan's picture

"Jim -- care for a banana ?"

+1. Great anectdote.

Wed, 08/01/2012 - 13:54 | 2669450 Rahm
Rahm's picture

Its posts like these I wish I could give you more than a single +1

Wed, 08/01/2012 - 15:35 | 2669959 Daily Bail
Daily Bail's picture

Bob Costello was the grandson of Lou Costello (of Abbot & Costello).  He was one of the good guys at CNBC during the bubble mania.  Always skeptical about the valuations and apparently willing to throw Cramer under the bus on the word of a small-time fund manager he had never met.

By the way, Redback eventually traded down to $1 (in 2003 or so) after hitting at least $200 on the high side in 2000.

Wed, 08/01/2012 - 11:42 | 2668891 resurger
resurger's picture

Charles Manson sends his regards ...

Wed, 08/01/2012 - 11:44 | 2668892 Dr. Engali
Dr. Engali's picture

Hmmmm where have I heard this before? Oh yeah the flash crash. Damned fat finger.

 

http://money.msn.com/top-stocks/post.aspx?post=84cf7386-3e10-4053-8dc3-0046efc47acc

Wed, 08/01/2012 - 11:49 | 2668907 Cdad
Cdad's picture

It's not looking good.  Underlying individual stocks are being sold...quite hard in some instances.  SPY seems clueless, as always.  I suspect we will find ourselves in illiquid circumstances shortly.

**additional: it seems like the coal stocks have run out of sellers, finally...one year later**

Wed, 08/01/2012 - 11:53 | 2668964 HoofHearted
HoofHearted's picture

Jon Corzine may need to plan for a table of 3 now....and more party guests to join him soon.

Wed, 08/01/2012 - 12:00 | 2668990 Manthong
Manthong's picture

What's that?

Quants listed Indian Power Grid experience on resume'?

Wed, 08/01/2012 - 11:43 | 2668897 Timmay
Timmay's picture

Disintegration...

Wed, 08/01/2012 - 11:44 | 2668901 fireangelmaverick
fireangelmaverick's picture

Those that live by the Algo shall die by the Algo .....Book Of Bankers Chapter 2 Verse 7

 

Wed, 08/01/2012 - 11:51 | 2668945 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Like day and Knight!

Wed, 08/01/2012 - 12:29 | 2669123 ParkAveFlasher
ParkAveFlasher's picture

Ultimate irony = algos invented to fend off human tendency to panic in the marketplace, algos applied to market, algos subsequently panic themselves.

And Man gazed deeply into the silvered glass that He fashioned and saw ... Himself.

Wed, 08/01/2012 - 11:46 | 2668906 Cognitive Dissonance
Cognitive Dissonance's picture

Pretty soon we will be reduced to trading beads and trinkets with the other locals.

Or at least PMs for food and other stuff.

Wed, 08/01/2012 - 11:55 | 2668969 Agent P
Agent P's picture

Beanie Babies

Wed, 08/01/2012 - 12:30 | 2669129 ParkAveFlasher
ParkAveFlasher's picture

long wampum!  (someone on ZH has already said this before, I know it)

Wed, 08/01/2012 - 11:45 | 2668909 Lost Wages
Lost Wages's picture

This is what you get for running your trades on a Commodore 64.

Wed, 08/01/2012 - 11:50 | 2668940 poldark
poldark's picture

:0)

Wed, 08/01/2012 - 11:58 | 2668979 Haager
Haager's picture

So you say that I can give up waiting for an Atari conversion?

Wed, 08/01/2012 - 12:19 | 2669094 Lost Wages
Lost Wages's picture

They are upgrading to a Packard Bell PC Clone with an 8 MB hard drive.

Wed, 08/01/2012 - 12:38 | 2669163 machinations of...
machinations of men-do's picture

Best price on 4K DRAM!  6502's & Z80's, too!

Gold plated leadframes galore!

Oh, for that seventies glow...

Some trouble getting my 8" floppy up, though...

Wed, 08/01/2012 - 13:40 | 2669385 sunaJ
sunaJ's picture

You're deluding yourself.  It's only a 5" floppy.

Wed, 08/01/2012 - 15:28 | 2669927 Lux Fiat
Lux Fiat's picture

Try cassette tapes.

Wed, 08/01/2012 - 12:04 | 2669006 americanspirit
americanspirit's picture

If all these criminals were limited to running on Commodore 64s at least it would limit the damage they could do.

Wed, 08/01/2012 - 12:16 | 2669074 malikai
malikai's picture

300 baud!

Wed, 08/01/2012 - 13:46 | 2669395 sunaJ
Wed, 08/01/2012 - 15:46 | 2670008 malikai
malikai's picture

Let's meet in the middle:

All HFTs must submit orders by 9600 FAX.

Wed, 08/01/2012 - 13:48 | 2669409 Cognitive Dissonance
Cognitive Dissonance's picture

The glory days of 300 baud.

Press on pioneer.

Wed, 08/01/2012 - 21:44 | 2670881 StychoKiller
StychoKiller's picture

Got a used VicMODEM I can sell ya...

Wed, 08/01/2012 - 11:45 | 2668910 pods
pods's picture

I bet ya they are waiting for Indian IT customer service to pick up so they can come back online.

pods

Wed, 08/01/2012 - 15:40 | 2669986 ZeroAvatar
ZeroAvatar's picture

"This is Peggy, how can I help you?"

Wed, 08/01/2012 - 11:45 | 2668911 RobotTrader
RobotTrader's picture

Wow, are you sure that isn't a junior gold stock?

Wed, 08/01/2012 - 11:47 | 2668926 Dr. Engali
Dr. Engali's picture

Reminds me of your mom...always going down.

Wed, 08/01/2012 - 11:50 | 2668943 Vincent Vega
Vincent Vega's picture

Good one, Dr E.  And don't forget: fruit never falls far from the tree.

Wed, 08/01/2012 - 12:07 | 2669014 SheepDog-One
SheepDog-One's picture

The shitapple never falls far from the tree. Shit Apple - YouTube

Wed, 08/01/2012 - 13:10 | 2669293 Paul Atreides
Paul Atreides's picture

"I am the liquor"

Wed, 08/01/2012 - 21:45 | 2670884 StychoKiller
StychoKiller's picture

Watch out for that "water of life" stuff...

Wed, 08/01/2012 - 12:00 | 2668991 SheepDog-One
SheepDog-One's picture

Goin down like Robo at the Saturday nite 'Boner Jam' at the Blue Swallow Bar.

Wed, 08/01/2012 - 12:46 | 2669183 Biggvs
Biggvs's picture

A "White Swallow" would seem more appropriate. Or perhaps the Blue Oyster?

http://www.youtube.com/watch?v=tTJMerul33E

Wed, 08/01/2012 - 11:52 | 2668946 oddjob
oddjob's picture

Like Netflix resources?

Wed, 08/01/2012 - 11:57 | 2668975 slaughterer
slaughterer's picture

I wondered when the NFLX Schadenfreude would hit ZH: new 52-week low today for good ol NFLX.  The stock you can always count on going down.  

Wed, 08/01/2012 - 11:45 | 2668912 Never One Roach
Never One Roach's picture

Glad my money is safe...diversified with 50% PGF and MFG and the other 50% in FB and Zynga.

I read 'diversification' is a good idea...safety when you diversify, right?

Wed, 08/01/2012 - 11:46 | 2668915 Sabibaby
Sabibaby's picture

Where's our Knight in Shinning Armour?

Wed, 08/01/2012 - 11:46 | 2668916 Dr. No
Dr. No's picture

Seems like someone entered a alogorithm which sells all shares to push price down 25%.  Who would have thought of that?

"theres no money here!!"

"Then why are all you brokers here?!"

(forgive my memory of the direct quotes).

Wed, 08/01/2012 - 11:47 | 2668924 Godisanhftbot
Godisanhftbot's picture

 this is what you get when you pay your programmers $10 an hour. They need to pay them at least $15.

 Better yet , pay them the VWAP of the rate the CFTC investigators get.

 

Wed, 08/01/2012 - 11:53 | 2668962 unununium
unununium's picture

Broker: "This is a stock exchange. There's no money to steal!"

Bane (through mask): "Oh yeah? Then what are YOU doing here?"

Wed, 08/01/2012 - 11:47 | 2668925 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'd love to see another 23% dump in FaceSuck right now.

Wed, 08/01/2012 - 11:47 | 2668927 GraveyardSpiral
GraveyardSpiral's picture

Wait, does this mean that I should BTFD?   Somebody please tell me when down is bad again!!!  /sarc

Wed, 08/01/2012 - 11:56 | 2668973 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

There's never a computer "glitch" when the market is going up!

Wed, 08/01/2012 - 11:48 | 2668928 Vincent Vega
Vincent Vega's picture

Is it just me or does it seem like 'technology issues' seem to coincide with Fed meetings, ECB announcements, etc...  Maybe it's India's fault; I hear they are having some power issues.

Wed, 08/01/2012 - 11:48 | 2668930 Frank N. Beans
Frank N. Beans's picture

quick Robin, to the batmobile!

Wed, 08/01/2012 - 14:49 | 2669760 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

But it lost a wheel, and the Joker got away!

Wed, 08/01/2012 - 15:44 | 2670004 ZeroAvatar
ZeroAvatar's picture

Adds a whole new meaning to yelling 'FIRE' in a crowded theatre!

Wed, 08/01/2012 - 11:49 | 2668932 Meesohaawnee
Meesohaawnee's picture

thought you all would like a good laugh from todays Daily Yahoo finance embarassment. Marissa has her work cut out.

http://finance.yahoo.com/blogs/breakout/nevermind-fed-stocks-going-higher-says-cote-145608432.html

Wed, 08/01/2012 - 11:53 | 2668963 Ralph Spoilsport
Ralph Spoilsport's picture

Yahoo Finance < CNBC

Wed, 08/01/2012 - 12:43 | 2669182 Jay Gould Esq.
Jay Gould Esq.'s picture

Actually, Yahoo Finance = CNBC. They have quite the symbiotic "partnership" now, proudly exhibited on YF's front page.

Wed, 08/01/2012 - 13:46 | 2669399 Ralph Spoilsport
Ralph Spoilsport's picture

The comments section on Yahoo Finance is almost as bad as YouTube's as far as idiotic posts by morons. I can't see where CNBC's reputation will be helped by associating with the Hoi Polois at Yahoo. Dumb and dumber.

Wed, 08/01/2012 - 11:49 | 2668934 Ralph Spoilsport
Ralph Spoilsport's picture

Heat Death of the HFT Alliance.

Wed, 08/01/2012 - 11:51 | 2668947 HaroldWang
HaroldWang's picture

They might want to get that fixed before, say, 2:15 today.

Wed, 08/01/2012 - 11:53 | 2668956 alien-IQ
alien-IQ's picture

One down...how many more to go?

Wed, 08/01/2012 - 11:56 | 2668961 Temporalist
Temporalist's picture

"...he knows who I am.  I am the Night Rider!  I am the chosen one! The mighty hand of vengeance sent down to strike the un-roadworthy."

http://youtu.be/gKPEOfybQak?t=56s

Wed, 08/01/2012 - 12:07 | 2669027 slewie the pi-rat
slewie the pi-rat's picture

oh, go fly a kit

Wed, 08/01/2012 - 12:27 | 2669119 blunderdog
blunderdog's picture

We'd all do well to recall the Night Rider died crying...

When I look up in the night sky, I remember.

Wed, 08/01/2012 - 11:55 | 2668967 drivenZ
drivenZ's picture

uhhh, I'm going to go out on a limb here and say...BUY knight

 

they have a tech glitch and the stock drops 20%? sounds like a knee jerk overshoot to me. 

Wed, 08/01/2012 - 11:58 | 2668982 SheepDog-One
SheepDog-One's picture

Well you go buy it then.

Wed, 08/01/2012 - 11:59 | 2668985 drivenZ
drivenZ's picture

I am

Wed, 08/01/2012 - 16:38 | 2670188 SheepDog-One
SheepDog-One's picture

Wow nice buy there drivenZ only down another 10%!

Wed, 08/01/2012 - 11:57 | 2668974 JLee2027
JLee2027's picture

Wait until the entire market does this - all at once.

Wed, 08/01/2012 - 11:58 | 2668978 Unprepared
Unprepared's picture

"We're having the best year since 2003 and the second-best year since 1998, so investors need to get into the market regardless of what the Fed does," says Doug Cote, chief market strategist at ING Investment Management

Wed, 08/01/2012 - 12:04 | 2668987 slewie the pi-rat
slewie the pi-rat's picture

thank goodness! 

more [client account vaporization?] data for the "volkerRule", now approaching Liberty itself for being "honored in the breach" by criminals with taxmoney and total air superiority and fire power

...BiCheZ!

Wed, 08/01/2012 - 12:00 | 2668988 boh knows
boh knows's picture

Market Maker no more. More like Market shaker. This is what you get for manipulating the spreads of securties all day every day.

Wed, 08/01/2012 - 12:04 | 2669009 Darkside
Darkside's picture

I just wonder if their problems have to do with this

http://www.valuewalk.com/2012/07/knight-securities-likely-to-accept-nasd...

Wed, 08/01/2012 - 12:06 | 2669023 DeFeralCat
DeFeralCat's picture

There is a posting up for an Operations Manager in Jersey City. The requirement is the thing you worked on before had to stay up and running from at least 9:30 to 9:33.

Wed, 08/01/2012 - 12:08 | 2669034 SheepDog-One
SheepDog-One's picture

Why is it NEVER called a 'technical malfunction' when markets go UP 5%??

Wed, 08/01/2012 - 12:10 | 2669039 walküre
walküre's picture

Is the power still out in India?

Hillarious. The economies are crashing all across the world and sheep are still glued to their TeeVee listening to Bagdad Bob's army about how more of the same QE would stave off a recession.

Money is worthless. The confidence is fleeting. Why is the Last One supposed to turn off the lights? I mean who cares if the lights stayed on when everything goes to shit? Is collapse in a dark room a better event? Which brings me to my initial question.

Do Indians care if the someone suggested there to the Last One to turn off those lights?

Edit: Power in India is back on. For now. But nobody knows what happened.

 

Wed, 08/01/2012 - 12:14 | 2669063 SheepDog-One
SheepDog-One's picture

The sheeple will never change, theyre shit apples.....when a shit apple fall from the tree and grows up in a field of shit, it becomes a shitapple tree, no question about it.

Shit Apple - YouTube

Wed, 08/01/2012 - 12:20 | 2669090 walküre
walküre's picture

You're on to something. You could take a time machine and bring back a guy from ancient Greece, pluck him in front of a TeeVee with a bowl of popcorn and he'd be sitting there and believing it all. No evolution whatsoever. We're never escaping this planet of Dumb. Creator either played a really sick joke or random atoms of shitapples crashing millions of years ago and the result is shitapples.

Wed, 08/01/2012 - 21:50 | 2670896 StychoKiller
StychoKiller's picture

"We get signal:
Gentlemen, all your circuits (base) are belong to us
you are on the way to destruction
what you say!"

Wed, 08/01/2012 - 12:11 | 2669052 insanelysane
insanelysane's picture

Programmers are on vacation.

Wed, 08/01/2012 - 12:19 | 2669091 Ignorance is bliss
Ignorance is bliss's picture

Programmers are in India.

Wed, 08/01/2012 - 12:14 | 2669066 spanish inquisition
spanish inquisition's picture

We won't know how serious this is until Jamie checks his pockets.....

Wed, 08/01/2012 - 12:18 | 2669086 john_connor
john_connor's picture

"This is only a sentencing hearing, and your choice is exile or death."

Wed, 08/01/2012 - 12:48 | 2669201 tekhneek
tekhneek's picture

"Death."

"Okay. Sentenced to death then... by exile."

Wed, 08/01/2012 - 12:24 | 2669115 vas deferens
vas deferens's picture

For all of you who trade through Scottrade.com Rodger O. Riney (owner of Scottrade) was a founder and board member of KCG. 

http://www.knight.com/investorrelations/secText.asp?id=0001193125-06-073441&doc=1&num=8 

Rodger O. Riney the next Russell Wasendorf Sr. ?? 

Wed, 08/01/2012 - 12:47 | 2669196 tekhneek
tekhneek's picture

One word comes to mind: "Vaporized"

Wed, 08/01/2012 - 15:09 | 2669840 Overflow-admin
Overflow-admin's picture

The Dark Knight faces his destiny... spoil?

Wed, 08/01/2012 - 15:34 | 2669956 Lux Fiat
Lux Fiat's picture

Perhaps Knight should consider sponsoring the US diving team, assuming they have any spare cash lying around after today.  New customer service motto "We'll go off the deep end for you".

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